Coller takes over controversial equity business invested in Apollo Group and Keepmoat

Lloyds HBOS has sold 70% of the private equity business that holds its investments in social housing firms Apollo Group and Keepmoat to Coller Capital.

The firm paid £332m for the majority stake in the equity firm, Bank of Scotland Integrated Finance (BSIF).

The unit was led by controversial former HBOS property boss Peter Cummings and increased the bank’s exposure to firms by blending equity with debt funding.

It invested in a range of companies from different sectors, including Ainscough Cranes. However, many of its biggest property and housebuilding investments, such as Crest Nicholson and McCarthy and Stone, were outside the unit.

Coller will now run the business using BSIF’s existing management, which will transfer to the firm under the deal.

In total Collar values the portfolio at £480m, which it says represents a small premium on its book value.

Lloyds selected Coller as preferred bidder for the portfolio in April.

Topics